Pertamina (PERTAMINA) Q4 2023 earnings summary

Executive summary

• 2023 attributable net income reached $4.441B, up 16.67% YoY and 155.6% of budget; EBITDA was $14.356B, up 5.61%.

• Revenue fell 10.72% to $75.788B as lower price parameters and compensation income offset higher domestic sales volumes; recognized 2023 fuel compensation income was $7.190B.

• Operating performance improved across most businesses, with higher upstream production, refinery intake, fuel sales, gas sales and power generation.

Financial highlights

• Revenue was $75.788B, down 10.72% YoY; operating income was $8.399B, down 11.78%, while profit for the year rose 17.49% to $4.770B.

• Gross profit was $12.432B versus $13.515B in 2022; cost of sales and other direct costs declined 11.23% to $63.356B.

• Attributable net income was $4.441B versus $3.807B in 2022; EBITDA reached $14.356B versus $13.593B.

• Cost optimization contributed up to $1.25B; finance initiatives generated nearly $1B, including more than $380M of interest-cost savings and over $451M from hedging and risk mitigation.

• Fuel compensation income of $7.190B supported earnings; other operating income fell 47.31% to $9.131B as compensation revenue declined with lower price parameters.

Outlook and guidance

• 2024 plans prioritize consolidated revenue growth, cost control, technology adoption, higher oil and gas output, downstream sales, asset reliability and new energy businesses.

• 2024 planning assumptions include ICP of $82/bbl and Rp15,000 per US dollar; exchange-rate hedging and downstream optimization are planned to protect profitability.

• The IMF projected 3.1% global growth for 2024 and the World Bank 2.4%; Indonesia’s government projected 5.2% growth.

• Domestic final energy demand is projected to grow 4.6% annually in the Hymne scenario and 3.5% in the Mars scenario over 2023–2033.